Payroll

jacqui76
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New Zealand
jacqui76

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Payroll

Hi i have two employees incorrectly set up in payroll and need to know how to fix this.  One is a casual part-time employee and holiday pay is added with each pay processed.  Unfortunately this person is also set up with 120 hours annual leave each year, so the holiday pay is added to each pay but now shows a large negative balance which deducts itself off the next pay processed after the end of year roll-over.  I have manually adjusted the holiday pay amount back to 0 but how can i get rid of the annual leave hours accrued in the initial set-up?

 

The other employee is a full time permanent employee, but was incorrectly set up with no holidays.  So any annual leave taken goes into negative and the holiday pay carries on accumulating during the year.  at the end of the year when annual leave normally is adjusted, this person just carries on with a negative balance.

 

am i best to start a new payroll file and transfer all the balances over?  If so, how?

1 REPLY
MYOB Moderator Steven_M
21,574 Posts
MYOB Moderator
New Zealand
Steven_M
MYOB Moderator

21574Posts

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Re: Payroll

Hi @jacqui76

 

Welcome to the MYOB Community Forum, I hope you find it a wealth of knowledge


Firstly, it does sound salvageable and I wouldn't be looking at creating a new payroll for those employees.

 

Employee #1
If the employee is a casual employee they would only receive holiday pay and no annual leave. Generally, you would set this up by going to the Leave Details tab of the employee and ensure that you have no values in the Normal Hours per week field (Normal days/week & Normal hours/day). This will ensure that no Annual Leave Entitlement is due to the employee. You would also need to go to the Pay Default/Totals tab and add a 1 into the Quantity column for the HP/Holiday Pay pay code, this will pay out the holiday pay each pay for the employee.

 

If the employee is a part-time employee you would ensure that you have a value entered into the Normal Hours per week field, which will give them an Annual Leave entitlement.

 

In your case, you have failed to specify if the employee is a casual or part-time (they are two different things in terms of annual leave).

  • If they are a casual employee, you would be looking at readding the holiday pay in (if it was removed) and paying that out to the employee. If they do have an entitlement amount due to incorrect rollovers, this can be removed by changing the Annual leave due as at xx/xx/xxxx value back to 0.00. Do make sure that the employee is set up (as above) to ensure that it does work correctly going forward.
  • If they are a part-time employee, you would need to work out how much holiday pay has been paid to the employee, work out what the equivalent hours of that would have been and then reduce the  Annual leave due as at xx/xx/xxxx value by that amount.

Employee #2

I would be recalculating the annual leave for the employee. New Zealand Payroll Support Note: Fixing holiday pay paid in error  Section: Employee has passed their anniversary update will go through that process.

 


Kind Regards,
Steven
MYOB Client Support
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